Ex-China ocold rolled coil (CRC) offer prices have moved up in the past week amid the rising trend in the local market.
At present, export offers for CRC given by major Chinese mills are at $520-530/mt FOB for October shipment, moving up by $10/mt compared to July 15.
Reference deal prices have been heard at $505-515/mt FOB to Southeast Asia and South America, with the upper end of the range increasing by $5/mt over the past week. Some transactions have been heard at $505/mt FOB last week, but most negotiations are not below $510/mt FOB at the moment, sources have said. “Economic growth in China becoming positive in the second quarter of the current year bolstered market players’ sentiments, and so they expect good demand in the third quarter, which will provide support for the CRC market,” one trader said.
During the given week, CRC prices have been relatively high in the domestic market in China, while buyers have been cautious. Meanwhile, CRC has been in short supply, and so market players remain bullish as regards the market prospects amid the current relatively low inventory levels. It is thought that CRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,316/mt ($619/mt) ex-warehouse, increasing by RMB 30/mt ($4.3/mt) compared to July 15, according to SteelOrbis’ information.
As of July 22, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,802/mt ($545.5/mt), increasing by RMB 29/mt ($4.2/mt) or 0.8 percent since July 15.
$1 = RMB 6.9718
